NORWICH — Detectives from the Connecticut State Police have successfully recovered and returned a portion of stolen cryptocurrency to a victim of theft, authorities announced Thursday.

On March 15, the Norwich Police Department contacted the State Police’s Eastern District Major Crime unit and the Bureau of Special Investigations/Statewide Organized Crime Investigative Task Force, both part of the Cryptocurrency Working Group, to report a significant cryptocurrency theft.

The victim’s cold storage wallet had been compromised, with around $159,712.26 in Bitcoin and Ethereum illegally siphoned off in an attack known as a “wallet drainer.”

Investigating detectives traced the stolen digital assets to two compliant cryptocurrency exchanges.

They swiftly issued freeze requests and secured search warrants from the New London Superior Court for asset seizure.

After months of investigation and legal proceedings, on Oct. 1, detectives returned 0.28993293 Bitcoin (BTC) and 24,051.40 USDT, equivalent to $42,129.95 USD, to the victim.

In light of this incident, the Connecticut State Police are advising residents on how to secure their cryptocurrency:

– Enable Two-factor Authentication (2FA) wherever possible.
– Safeguard private keys for cold storage devices and do not share them.
– Use strong, unique passwords for accounts.
– Stay vigilant against Phishing or Smishing, verifying URLs and email addresses, and avoiding suspicious links or unknown attachments.
– Regularly update software.

The State Police Cryptocurrency Working Group continues its commitment to addressing the challenges posed by digital asset crimes and protecting Connecticut’s citizens in the digital economy.

The State Police urge anyone who suspects they have fallen prey to a cryptocurrency scam to report it to local or state law enforcement, the Internet Crimes Complaint Center (IC3), and via email at [email protected].

CLEVELAND, Ohio – Federal prosecutors are seeking to claim $200,000 worth of cryptocurrency that was siphoned from an investor in Ashtabula.

Bitcoin valued at about $340,000 was fraudulently transferred from the investor’s virtual currency wallet in February, according to documents filed in U.S. District Court in Cleveland on Thursday. The victim did not seek the transaction.

Investigators analyzed a public ledger of crypto transactions to trace the funds to two accounts, the documents show. Authorities found that the bitcoin from the Ashtabula investor was converted to Tether, a cryptocurrency tied to the U.S. dollar and created by Tether Limited Inc.

In March, a month after the theft, Tether Limited Inc. froze the two accounts. Federal investigators filed a seizure warrant in July for the funds. Tether Limited later transferred $200,000 worth of cryptocurrency from the two accounts to a federal law enforcement fund.

Authorities are seeking to return the funds to the investor, though the value of the investment has dropped since the theft. Prosecutors must first go through forfeiture proceedings with the owners of the two addresses.

But the owners of the addresses are unknown, prosecutors said in the documents. A court filing indicates that the scheme originated in Nigeria.

The court filings in the case say FBI agents in Cleveland are “investigating cryptocurrency confidence fraud scams perpetrated on victims throughout the United States, including in the Northern District of Ohio.”

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Norwich, CT – Connecticut State Police successfully returned over $42,000 in stolen cryptocurrency after a months-long investigation.

In March, Norwich police reported that $159,712.26 worth of Bitcoin and Ethereum had been illegally removed from a cold storage wallet. Connecticut detectives traced the stolen assets to two exchanges. They issued search warrants, leading to the freezing of stolen cryptocurrency.

According to Connecticut State Police, detectives returned 0.28993293 Bitcoin (BTC) and 24,051.40 USDT to the victim on October 1, with a total value of $42,129.95. Investigators received support from the New London Superior Court, which granted search warrants to seize the assets.

State police reminded residents to strengthen online security for cryptocurrency. Key tips included using two-factor authentication (2FA), keeping private keys secure, and avoiding phishing scams.